PART 10Guarantees

Specified amount: reduced amounts and waivers in relation to comprehensive guaranteesI199

1

HMRC must approve a reduction in the specified amount in relation to a comprehensive guarantee to 50% of the amount determined under regulation 98(1)(b) if satisfied that the person authorised to give the comprehensive guarantee—

a

draws up accounts in accordance with generally accepted accounting practice;

b

maintains reliable business records;

c

is solvent;

d

has in the preceding three years discharged any liability to pay—

i

import duty; and

ii

EU customs duty under the EU Customs Code as it had effect before exit day; and

e

has sufficient financial resources to meet the liability or potential liability not guaranteed by the reduced comprehensive guarantee.

2

HMRC must approve a reduction in the specified amount in relation to a comprehensive guarantee to 30% of the amount determined under regulation 98(1)(b) if satisfied that the person authorised to give the comprehensive guarantee—

a

meets the conditions in paragraph (1); and

b

maintains procedures to ensure that HMRC are notified of any breach of any Customs obligation.

3

HMRC must approve a waiver to the requirement for a comprehensive guarantee in relation to a potential liability to pay import duty if satisfied that the person authorised to give the comprehensive guarantee—

a

meets the conditions in paragraphs (1) and (2)(b);

b

allows HMRC officers access to all electronic and physical information systems maintained by that person;

c

maintains a logistical system that identifies chargeable goods and domestic goods and their location;

d

where the liability relates to agricultural goods, has satisfactory procedures to ensure compliance with any relevant regulatory obligation in relation to agricultural goods;

e

has satisfactory procedures in relation to archiving records; and

f

maintains satisfactory computer system security measures.

4

A person authorised as an authorised economic operator is treated as meeting the conditions in paragraphs (2) and (3).

5

In this regulation, “generally accepted accounting practice” has the meaning given in section 1127 of the Corporation Tax Act 2010 M1.